Which of the Following Characterises the Classical View of the Economy

question 119

Multiple Choice

Which of the following characterises the classical view of the economy?

• A) The economy is inherently unstable.
• B) Prices and wages are not flexible.
• C) The economy will automatically self-correct to full employment.
• D) The economy needs government intervention to adjust to full employment.

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Definitions:

Productivity

The efficiency at which products or services are created and delivered, often measured by the output per unit of input.

Performance

Refers to the effectiveness and efficiency of an action or behavior in achieving objectives or goals.

Motivational Theories

Theories that explain what drives individuals to initiate, direct, and sustain behaviors to meet their needs and goals.

Theory X

A management assumption that employees are inherently lazy and will avoid work if possible, hence the need for control and direct supervision.